A 5% increase in lending by Indian banks and non-banking financial institutions (NBFCs) to the Adani Group, led by billionaire businessman and billionaire Gautam Adani. Indian banks and NBFCs accounted for only 31% (Rs 70,213 crore) of Adani’s total debt of Rs 2.27 lakh crore as of March 2023. As on March 31, 2024, Adani’s debt increased to Rs 2.41 lakh crore. Of this, Rs 88,100 crore is in Indian financial institutions; That is 36%.

The rest of Adani Group’s total debt is in foreign financial institutions and debentures. SBI, Bank of Baroda, Union Bank, Canara Bank, HDFC Bank, Axis Bank and ICSICI Bank have reportedly increased their loans to Adani Group. Adani Group has sought additional loans for the development of its airport and Harithorja business segments. Adani’s debt from the domestic capital market (capital market) increased from Rs 11,562 crore to Rs 12,404 crore in March last year.

Debt from international banks decreased from Rs 63,781 crore to Rs 63,296 crore. Debt from the international capital market also decreased from Rs 72,794 crore to Rs 69,019 crore. At the same time, the ratio between operating profit and debt is massively lower in the Adani Group’s favour. It has decreased to 2.19 times from 3.27 times in the previous year. The group’s operating profit in the last financial year was Rs 82,917 crore. One lakh crore rupees is targeted for the current year.

Adani Group-controlled Vizhinjam Port and a port terminal in Colombo, Sri Lanka, are expected to become operational this year. Adani Group is also strengthening cement, green energy, airport and solar business sectors. This is expected to further improve the operating profit-debt ratio.